National Sugar Development Council
(Federal Ministry of Commerce & Industry)
Sugar Sector Development Fund
Invitation for Expression of Interest
Introduction
In pursuance of its mandate to catalyze developments in the Nigerian Sugar sub-sector, the NSDC hereby invites applications from interested private investors nation-wide for the disbursement of the Sugar Levy Funds as project loans for the acquisition of sugar manufacturing machineries and cane field development.
Scope and Maximum Exposure of Projects
The maximum exposure in any single project to be financed from the Fund is as follows:
1. Mini Sugar/Ethanol Plants – N500 million
2. Sugar Factory/Refinery Refurbishment- – N259 million
3. Sugarcane Farm Establishment
/Expansion (for sugar/ Ethanol prod) – – N50 million
4 Provision of Infrastructure (for field & factory) – N50 million
5 Flood/Fire Disaster Mitigation on Sugar Estates – N50 million
Who Can Apply
The loans, which shall attract concessionary interest rates, is open to private corporate bodies wishing to invest on sugarcane, sugar and ethanol (using sugarcane feedstock) production nation-wide. Applicants must be registered entities and working in Nigeria or with verifiable plans of Investing in the Nigerian sugar sector.
Conditions for Accessing Sugar Development Fund
Applications for Sugar Sector Development Loans must satisfy the following conditions;
- Applicants must be companies duly registered to operate in Nigeria
- Application must be supporter with bankable feasibility report (where appropriate)
- Loan can only be utilized on sugar related projects specified above and agreed with NSDC
- There shall be formal and unconditional acceptance of loan offer. The loan shall attract such fees as Appraisal and Commitment fees as well as legal charges
- Payment of the principal sum, interest, commitment and other charges shall be at the rate and installments specified in the agreement document
- Loan beneficiaries must be prepared to provide security in line with the standard requirement of the Bank of Industry (BOI) and/or other forms of security as may be considered appropriate by NSDC and BOI
- The decision of the NSDC Technical Evaluation and BOI Financial Assessment Panels is final and the Council is not obliged to enter into any correspondence with any unsuccessful applicant.
Submission of Proposal
The proposal in both hard and electronic formats should be in sealed envelopes marked “Expression of Interest on Sugar Sector Development fund” on the top left hand corner to National Sugar Development Council. Submission must include the following documents/information as relevant;
- Formal Letter of Application
- Photocopy of Certificate of Incorporation with Corporate Affairs Commission
- Photocopy of the Certified True Copy of Memorandum of Articles of Association of company
- Photocopy of Title documents to project site (Certificate of Occupancy)
- Photocopy of Title documents to the collateral security-preferably landed property in an urban centre
- Approved Site Plan and Building Plan (if new building is required)
- Bill of Quantities or Contractor’s Estimate of Cost on Factory Building (if available)
- Quotations for items of plant and machinery (at least 3 different quotations)
- Three years of most recent company Audited Accounts (for existing company)
- Three years most recent Tax Clearance Certificate for company and two Directors
- Evidence of compliance with Pension Act 2004 (where applicable)
Submissions should reach the address below on or before 13th October 2010.
The Executive Secretary,
National Sugar Development Council,
Plot 564/565, Off Independence Avenue,
Central Business District
PMB 229, Garki
Abuja.
